Atac Resources Ltd. (CVE:ATC) (PINK:ATADF) share price continued to spike up by the end of last week and it is possible the price will continue to rally further up.
ATC stock saw another significant spike up on Friday under a trading volume that topped 1.7 million shares and was one of the heaviest recorded over the past half a year.
The share price burst up by the end of the trading session, possibly getting most of its thrust from short squeezes. The move up set things in favorable mode for Monday’s follow up, although from a technical point of view the chances of a gap up are slim – the price did drop back down a little before the close on Friday.
Currently, the closest resistances are around $7.35 and $7.75. Even with the massive volume in support, the stock will have to deal with recent highs, but it is possible since there was recent good news that might provide the necessary backbone to this rally.
The stock saw a favorable reaction to the latest quarterly announcement made on June 10, 2011. It was further spiced up by a significant silver-lead-zinc discovery at the Rackla Gold Project in Yukon, which the company announced three days later.
Some of the highlights on the recent quarterly report:
• Working capital nearly doubled over the quarter and was $46.4 million;
• Dilution was 28.8% over the last year;
• A net loss of $18 million, but most of it attributed to stock-based payments.
